The Southern Gujarat Chamber of Commerce and Industry (SGCCI) has signed an MoU with the Dubai Chamber of Commerce and Industry for consolidating trade ties.

The MoU was signed during Dubai Chamber Trade Mission's visit with a delegation of 11 businessmen to Surat led by chairman Abdul Rahman Saif Al Ghurair from April 17-20, an official release said.

The agreement was signed by Al Ghurair and Rohit Mehta, president, Southern Gujarat Chamber of Commerce and Industry, with an aim to promote bilateral trade between Surat and Dubai, especially in diamond and textile businesses, it said.

Besides consolidating economic relations between the two cities, the agreement sets the framework for the development of joint ventures and technology transfers and investment, exchange of trade inquiries and delegations.

It also fosters a spirit of better coordination between the business communities of both the countries in general and their respective members in particular, it added.

Kamal Dayani, Industries Commissioner, Government of Gujarat, highlighted Dubai's status as a major centre for trade, transport, tourism and financial services.

He added that the UAE's investments in India are concentrated in energy at 19.1 per cent, services 9.3 per cent, programming 7.8 per cent, construction 6.8 per cent and tourism and hospitality.

He said that the UAE's direct investments in India were estimated at about USD 1.9 billion during 2000-2011. He pointed out that the main exports between India and the UAE include precious metals, food items, textiles and machinery products, while India's imports from the UAE include precious metals, chemicals, wood, petroleum and petroleum products.

Dayani said more than 60 per cent of the total investments are likely to be made in Gujarat, indicating that the new vision of the state include the investment of USD 222 billion in several sectors, including roads, ports, airports, railways, urban infrastructure and transportation, water supply and tourism.

The market for jewellery and precious stones of India is estimated at about USD 27.5 billion in 2011 and is expected to grow at a compound annual growth of up to 15 per cent or to USD 55.3 billion by 2016.

India's volume of exports of gems and jewellery has grown with a CAGR of 20.25 per cent in last five years while over 70 per cent of total gems and jewellery exports of India come from Gujarat, where Surat is the largest diamond processing cluster in the world, Dayani said.

Al Ghurair said the Dubai Chamber Trade Mission to Surat was very fruitful and the MoU demonstrated the commitment to increase trade and investment between the two cities while taking bilateral ties to the next level.